1. Field of the Invention
The present invention relates generally to on-line securities trading and, more particularly, to solicited securities transactions.
2. Related Art
Traditionally, full-service securities brokers have offered advice to clients on conducting specific transactions (e.g. purchase stock X, sell stock Y, etc.). When a client places an order with a broker in response to an advice interaction with the broker, the resulting trade is deemed a “solicited trade.” Solicited trades are subject to specific regulations by regulatory agencies such as the SEC. By contrast, non-full service securities brokers (sometime referred to as “discount brokers”) have traditionally shied away from providing advice to customers that would give rise to solicited trades. In such situations, the client is given access to research tools, but no specific recommendations are imparted by the brokers to the client.
In the traditional full-service brokerage scenario compliance with regulations pertaining to solicited trades is accomplished by assigning a specific broker representative to interact with each client. In such situations the broker representative is responsible for adhering to the regulations with the assistance of compliance officers.
The increasing popularity of trading securities on-line, on the other hand, has made it desirable for non full-service brokers to offer advice to clients through a variety of channels that may trigger the applicability of solicited trade regulations. In such situations, however, no individual broker representative is responsible for interacting with a specific client. As a result, there is a need for an alternative means of ensuring compliance with applicable solicited trade regulations.